Ethereum's price has remained relatively stable after the U.S. Securities and Exchange Commission (SEC) approved 19b-4 filings for multiple spot Ethereum exchange-traded funds (ETFs). In the past 12 hours, the price has fluctuated between $3,640 and $3,740. Despite the approval, there hasn't been a significant increase in price, except for when rumors of the approval initially surfaced. This has led market observers to wonder if there will be a substantial jump once the ETFs start trading.
The approval of the 19b-4 filings is seen as a positive development by many, but it is just the beginning of the process. James Seyfarrt explained that the ETFs will not begin trading immediately and that there are still other documents that need approval. This could take a few weeks or even longer. In the meantime, Ethereum's price has dropped by 2.3% in U.S. dollar value since the SEC approvals, but it has gained over 21% in the past week.
Currently, Ethereum is trading at $3,692 per unit, which is more than 23% below its all-time high of $4,878 per coin on November 10, 2021. However, it is closer to the ATH compared to seven days ago when it was 36.6% below its peak. Some experts believe that once the Ethereum ETFs start trading, there might be an increase in value as they draw ether from the market.
In a similar vein, the Grayscale Ethereum Trust (ETHE) has been trading at a discount for a while, but its discount to net asset value (NAV) has improved significantly. Currently, the ETHE discount to NAV is only 5.59%. This situation is reminiscent of GBTC and suggests that ETHE may experience significant reductions in its reserves due to outflows of Ethereum.
If the demand from other Ethereum ETFs is not enough to offset these potential outflows, ETHE could put downward pressure on the Ethereum market. The impact of these ETFs on the ether spot market remains to be seen if they successfully navigate the approval process and get listed.
What are your thoughts on Ethereum's market performance following the SEC's approval of several spot Ethereum ETFs? Share your opinions in the comments section below.